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Global Economic Uncertainties and Exchange Rate Management in Africa: A Panel Study

Author

Listed:
  • Adedokun Adeniyi J.

    (Department of Economics, Dominican University, Ibadan, Oyo State – Nigeria)

  • Falayi Olabusuyi R.

    (Department of Economics, Dominican University, Ibadan, Oyo State – Nigeria)

  • Adeyemi Francis O.

    (Department of Economics, Dominican University, Ibadan, Oyo State – Nigeria)

  • Kumeka Terver T.

    (Department of Economics, Dominican University, Ibadan, Oyo State – Nigeria)

Abstract

This study investigates the effects of global economic uncertainties on exchange rate management in Africa from 1990 to 2021. Employing the quantile regression technique, findings show that both global and domestic economic uncertainties have significant influence on exchange rate management in Africa. The intensity of global economic uncertainty rises during the bearish and transitional markets, but dependence declines during the bullish markets. Moreover, the relationship between domestic uncertainty and African exchange rate management shows that the structure of dependence improves around the upper tails but declines around the lower tails. African countries should pay attention to global economy in order to combat any impending negative effects of global economic uncertainties. Also, attention should be paid to other uncertainties such as political, social, or other factors that may aggravate domestic economic uncertainties.

Suggested Citation

  • Adedokun Adeniyi J. & Falayi Olabusuyi R. & Adeyemi Francis O. & Kumeka Terver T., 2022. "Global Economic Uncertainties and Exchange Rate Management in Africa: A Panel Study," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 10(1), pages 161-184, September.
    • Handle: RePEc:vrs:auseab:v:10:y:2022:i:1:p:161-184:n:9
    DOI: 10.2478/auseb-2022-0010
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    References listed on IDEAS

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    More about this item

    Keywords

    global economic uncertainties; exchange rate management; Africa; panel study;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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